India union budget 2012 – Tax proposals

Mazars's latest report on the summary of tax proposals laid down in the union budget by the Government of India along with an analysis on their implications on various sectors and segments of our society.

The Finance Bill, 2012 was presented to the Lower House of the Parliament of India on March 16, 2012 and it is now being taken up for consideration and passage in the Budget Session of Parliament. This Bill has 108 clauses under Income Tax (compared with 298 Sections under the existing Income-tax Act). The Bill has introduced concepts like General Anti Avoidance Rules (which includes thin capitalization), Advance Pricing Agreements, source based taxation for taxing controlling interest (where there are underlying assets in India) and does away with cascading effect of dividend distribution tax for a multi-corporate structure. In addition, the bill proposes some sweeping changes to the Service Tax Regulations.